Chinese investors are waiting for the Thai economy to recover to resume their investment in the property market here, with some earmarking 2 billion baht each.
Sunchai Kooakachai, deputy managing director of property consultant Colliers International (Thailand) Co, said investors from mainland China had stalled their investment in the Bangkok residential sector since last year.
One of them, which planned to invest 2 billion baht to launch a new condominium project in the mid-tier segment around On Nut last year, decided to postpone the project until next year as it felt uncertain about the Thai economy.
"If tax incentives for the property sector are applied in the fourth quarter, these Chinese investors may return to invest or form a joint venture with Thai developers that have condo units ready to transfer during the tax incentive period," he said.
The investors may be interested in joining hands with small Thai developers that have unsold condo units, said Mr Sunchai. The Chinese investors would help with financing and draw new buyers from China.
There are a few property investment deals from three Chinese investors in the construction, property and non-property sectors, he said. They are looking for condo development in familiar locations to Chinese people such as Ratchadaphisek, Rama IX and On Nut.
Their investment is expected to be at least 2-3 billion baht each as they are familiar with such large-scale investments in China, where they invest over 10 billion baht each on property, said Mr Sunchai.
Colliers confirms Chinese investors also decided to delay their investment in the Pattaya property market. One notable stalled megaproject includes a condominium, hotel and mall worth over 10 billion baht where Chinese developer Greenland
Group had a joint venture with the Chearavanont family's businesses including CP Group and Magnolia Quality Development Corporation.
During the economic slowdown, overseas investors, particularly Chinese, saw an opportunity to invest in Thailand, but now they seek an attractive margin rather than focusing on locations as in the past, he said. They want an initial return of up to 25-28%, but 20% is acceptable given the circumstances.
To raise overseas investment, the government's new economic team should have a roadshow to explain the timeline for drafting a constitution and a general election, said Mr Sunchai. Foreigners may resume investment here shortly.
The Chinese are also keen on industrial sector investment. They prefer stand-alone properties outside industrial estates, especially in the eastern part of Bangkok.